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Report No. : |
346222 |
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Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
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Name : |
JHALAK DIAM LTD. |
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Registered Office : |
Room 512A, 5/F., Fu |
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Country : |
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Date of Incorporation : |
07.10.2010 |
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Com. Reg. No.: |
53128261 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is importer, exporter and wholesaler of all kinds of
gemstones, diamond for watches |
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No. of Employee : |
3 (Including
associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
HONG KONG - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12.5% of total system deposits in Hong Kong by the end of 2014. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4.4% in 2014. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
JHALAK DIAM
LTD.
Room 512A, 5/F.,
Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong
Kong.
PHONE: 852-2367
3947
FAX: 852-2367
3916, 3747 6295
E-MAIL: sunny@jhalakdiam.com.hk
Managing
Director: Mr. Sunil Dhanvantlal Shah
Incorporated on: 7th October, 2010.
Organization: Private Limited Company.
Issued Share Capital: HK$150,000.00
Business Category: Diamond Trader.
Annual Turnover: HK$50-60 million. (Including associates)
Employees: 3 (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 512A, 5/F.,
Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong
Kong.
Associated Companies:- (Same address)
Goldstar Diamond
Distributors, Hong Kong.
Jhalak Diam
(Single Cut) Ltd., Hong Kong.
Jhalak Diam, Hong
Kong. [Owned by Mr. Sunil Dhanvantlal
Shah]
53128261
1512451
Managing
Director: Mr. Sunil Dhanvantlal Shah
Contact
Person: Mrs.
Apama Sunil Shah
HK$150,000.00
(As per registry dated 07-10-2014)
|
Name |
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No.
of shares |
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Sunil
Dhanvantlal SHAH |
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138,000 |
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Aparna Sunil SHAH |
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12,000 |
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––––––– |
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Total: |
150,000 ====== |
(As per registry dated 07-10-2014)
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Name (Nationality) |
Address |
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Sunil
Dhanvantlal SHAH |
Flat C, 31/F., Block 8, Parc Palais, 18
Wylie Road, Kings Park, Kowloon, Hong Kong. |
(As per registry dated 07-10-2014)
|
Name |
Address |
Co.
No. |
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TWP
Consultants Ltd. |
2/F., Wing Yee Commercial Building, 5 Wing Kut Street, Central, Hong
Kong. |
1421957 |
The subject was incorporated on 7th October, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of gemstones, diamond for watches, etc.
Employees: 3. (Including associates)
Commodities Imported: India, Europe, Thailand, etc.
Markets: Hong Kong, China, other Asian countries, North America, Western Europe, etc.
Annual Turnover: HK$50-60 million. (Including associates)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Issued Share Capital: HK$150,000.00
Profit or Loss: Made very small profits in past years.
Condition: Business is normal.
Facilities: Adequate for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 150,000 ordinary shares of HK$1.00 each, Jhalak Diam Ltd. is equally owned by Mr. Sunil Dhanvantlal Shah and Mrs. Apama Sunil Shah. Both of them are Indian and belong to the Shah family. S. D. Shah is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the managing director of the subject. He can be reached at his Hong Kong mobile phone number 852-6806 8528.
S. D. Shah and A. S. Shah is a couple.
The subject is a diamond trader. It has got associated companies Jhalak Diam and Jhalak Diam (Single Cut) Ltd. [JDSC] located at the same address. JDSC was incorporated on 12 January, 2011.
Jhalak Diam is a sole proprietorship set up and owned by S. D. Shah on 8th March, 2000. The subject, JDSC and Jhalak Diam are engaged in the same lines of business, more or less.
The subject is trading in the following diamonds and products:-
·
Baguette Cut Diamonds;
·
Black Diamonds;
·
Carat Size Diamonds and Loose
Diamonds;
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Cut and Polished Diamonds;
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Diamond for Watches;
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Diamond Studded Jewellery;
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Jewellery Watch Cases and Straps;
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Single-Cut Diamonds;
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Tapper Diamonds; &
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Triangular Diamonds.
Most of the commodities are imported from India, other Asian countries, Africa, etc. Prime markets are Hong Kong, China, other Asian countries, etc. Business is normal.
In order to penetrate the international market further, JDSC has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it took part in “HKTDC Hong Kong Watch & Clock Fair 2013”. For instance, it is going to take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2016” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 1st to 5th March, 2016.
S. D Shah currently is operating another firm Goldstar Diamond Distributors which is also in Hong Kong. This firm is located at a different address.
The business of the subject is chiefly handled by S. D Shah. History in Hong Kong is over four years and nine months.
On the whole, consider it good for normal business engagements in small credit amounts.
DIAMOND INDUSTRY – INDIA
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From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
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The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
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Some of the basic traits of family run business enterprises include spirit
of entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
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Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.89 |
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|
1 |
Rs.100.39 |
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Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.